Producer–Consumer Misalignment as a Possible Cause for New Food Failure: Empirical Evidence From Chile

Abstract

Literature on new food products development agrees on the importance of gaining knowledge about consumer tastes and preferences as a way to increase new product success. However, the failure rate of new food introductions continues to be high. In economies with a highly developed retail system, retailers and other market players create an information and communication barrier between the producer and the consumer. Consequently, the development of new products becomes difficult in such conditions, since misalignments between producers and consumers are more likely to occur. To investigate the issue, we interviewed producers of Chilean companies in the blueberry, plum, and wine industries and concluded that their product design was based on assumptions about consumers’ preferences and on the observed market response to competitors’ products. To test if these assumptions were correct, we compared them to consumer preferences. Results showed that producers’ assumptions about consumer preferences differ significantly from actual consumers’ preferences.

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